The Reserve Bank of India (RBI) Governor Shaktikanta Das today highlighted cyber security and digital frauds as two major areas of concern in a central bank digital currency (CBDC) universe.
“The main concern comes from the angle of cyber security and the possibility of digital frauds. So, we have to be very careful about that just as a few years ago we had a major concern was on fake Indian currency notes. Similar things can also happen when you are launching CBDC,” said Governor Das when BT asked about the unknown risks in launching CBDC in India.
“In a CBDC universe, we have to be that much more careful with regard to ensuring cyber security and taking preventive steps to prevent any kinds of frauds because there will be attempts. We have to have robust systems and firewalls,” added Das.
The RBI has already sent a proposal to the government for amending the RBI Act, 1934, to enhance the scope of the definition of a ‘bank note’ and include currency in digital form. The new regulatory framework for digital currency would be part of the Cryptocurrency and Official Digital Currency Bill, 2021, which will be introduced in the current winter session.